July 8, 2019

OECD Warns Global Steelmaking Capacity Could Increase

As FastmarketsAMM reported last week, in a paper published on July 2 the Organization for Economic Cooperation and Development (OECD) warned global crude steelmaking capacity could increase by 3.9 percent to 4.9 percent from 2018-2021 if current investment projects are all realized, and there are no closures. Specifically, the OECD predicted global steelmaking capacity could amount to 88 million to 110 million tons per year during that three-year period with most of that new capacity coming from Asia and the Middle East.

Click here to read the full OECD report.

In another paper the OECD concluded, according to FastmarketsAMM, “steel market fundamentals softened markedly during the second half of 2018 amid a weakening of the global economic outlook, a rise in trade frictions and the persistence of excess capacity.” The two forces are “likely to exacerbate the overcapacity in global steelmaking, which is already significant.”